Hotels in Reykjavik

Compare cheap Reykjavik hotels

Hotels in Reykjavik are surprisingly numerous for such a small city. It’s not just hotels either, as the fastest growing accommodation sector here is trendy, design-led hostels that combine cost-effective dorms with stylish options for private rooms.
Iceland’s luxury sector remains a slow-burner, but a Marriott Edition hotel – positioned next to the eye-catching harbour-side Harpa concert hall – will become the city’s first five-star hotel when it opens in 2018.

Travel Information

City-centre hotels in Reykjavik

The bulk of hotels in Reykjavik are found in a central pocket, set either side of the main shopping street, Laugavegur, and north of Lake Tjornin.

All hotels here have the postcode of ‘Reykjavik 101’, hence the name of the 101 Hotel (Hverfisgata 10). Arguably Reykjavik’s best luxury hotel (until 2018 perhaps), it’s a sexy affair characterised by monochrome colours and impish bas-reliefs, and is the place where Kim Kardashian and Kanye West stayed when they visited Iceland.

If you’re a sucker for Art Deco, consider the venerable Hotel Borg (Posthusstraeti 11) – inside of which the first Icelandic branch of Jamie’s Italian opened in spring 2017.

Light sleepers should be aware that Bankastræti and Austurstræti are hubs for late-night bars, so can be noisy.

The eastern fringe of downtown – especially the streets just north of Hallgrimskirkja cathedral, Reykjavik’s omnipresent landmark, and extending into the 105 postcode – is quieter, and stacked with mid-range hotels. It’s a good place to be: only a 20-minute walk from the main action, but slightly more affordable.

Reykjavik’s cheapest hostels

Hostels are the new hotels in Reykjavik, with more and more opening. Do your homework: they range from the low-cost-for-a-reason to actually-very-pricey.

The best are located along the seafront; be prepared to pay a premium for Mount Esja views. Fitting into the ‘poshtel’ (posh hostel) category, they come with colourful and artfully decorated social spaces and host regular events, with accommodation in dormitories (some women-only) sleeping 8-16 people, plus private single and double rooms.

If you’re willing to sacrifice geographical position in favour of cheap Reykjavik hotel rates, there are similarly cool and vibrant places out near Reykjavik Airport or in the Laugardalur district in the eastern part of the city.

Highlights on the outskirts

The fringes also allow for more space as well as value. Anything on the south side of Route 49 fits into this category. In the area around domestic Reykjavik Airport, for instance, you’ll find the capital’s only indoor hotel pool plus a spa and a cinema.

The most amazing place skulks still further out. Winner of various sustainable tourism awards, the Ion Luxury Adventure Hotel (Nesjavellir vid Thingvallavatn) is an hour’s drive east of Reykjavik, set amid the Golden Circle. It’s a gleaming, startling vision of glass and steel.

Finding cheap Reykjavik hotels

Hotel rates drop by as much as 50% in winter.

Last-minute deals are also common – less so in July and August – so if you dare hold out, you might be rewarded with Reykjavik’s cheapest luxury-hotel rates, or a package with free excursions or transfers.

It’s not always a risk worth taking in Reykjavik, which continues to gain in popularity. Booking well in advance is almost always the best way to bag the best deals.